Adidas and On Summarize the Year: Record Revenues Amid Uncertain Future Forecasts

The German sportswear giant Adidas presented its 2025 results, which on one hand indicate a return to a growth path, but on the other hand are causing investor anxiety. The company reported operating profit exceeding expectations; however, its share price fell significantly after announcing forecasts for 2026. Adidas's management predicts that operating profit in the coming year will be around 2.3 billion euros, a figure lower than market speculation. The main factors expected to weigh on future results are unfavorable currency exchange rate fluctuations, rising freight costs, potential US trade tariffs, and the tense geopolitical situation in the Middle East. In response to these challenges, the company has decided to stabilize its leadership. Björn Gulden, considered the architect of the brand's revival, will remain as CEO until the end of 2030. Additionally, Egyptian billionaire Nassef Sawiris is set to become the new chairman of the supervisory board, suggesting a desire to strengthen the company's position in global markets. Investors appreciate Gulden's achievements, under whose leadership Adidas moved past the crisis following the end of its collaboration with Kanye West and focused on iconic shoe models like the Samba and Gazelle. The consumer goods and sportswear industry has undergone cyclical phases of consolidation since the 1970s, where global leaders must constantly balance innovation with supply chain optimization in unstable regions.At the same time, the Swiss brand On, backed by Roger Federer, boasted surpassing the 3 billion Swiss franc revenue threshold, representing growth of over 23 percent year-on-year. The company achieves particularly impressive results in emerging markets, including China, and in North America. Nevertheless, commercial successes go hand in hand with a debate on business ethics and pay disparities. CEO Marc Hoffmann received compensation of 10 million Swiss francs, placing him on par with the heads of major pharmaceutical corporations like Roche.